The U.S. construction sector slipped in September as spending faded for the second consecutive month following a downward revision in August’s results, the Commerce Department reported. The Census Bureau’s report on construction spending shows that the value of residential construction put in place in September was up 19% year on year but fell 0.4% month […]
As expected, steel prices are volatile and unpredictable as the market approaches year-end. Hot rolled continued its slow, gradual descent averaging $1,875 per ton this week, down another $10, based on Steel Market Update’s survey data gathered on Monday and Tuesday. Cold rolled and coated products, on the other hand, saw small increases to around […]
Ternium reported net earnings of $1.37 billion in the third quarter of 2021, up from $1.16 billion in the the prior quarter and following a loss of $21 million in the third quarter of 2020. The gains resulted from higher steel prices and strong global demand. Shipments were 3.1 million tons in the third quarter, largely unchanged […]
Speaking at a steel industry gathering just two days after unveiling the historic trade deal she helped negotiate with the European Union, U.S. Trade Representative Katherine Tai described the progress made in steel trade and the challenges that still lie ahead in curbing global steel overcapacity. Following are her remarks today at the General Meeting […]
October saw a gradual decline in steel prices for the second consecutive month, following one full year of continuous price increases. Hot rolled steel prices decreased $45 per ton throughout the month, with the SMU index averaging $1,885 per ton ($94.25 per cwt) as of Tuesday, Oct. 26. The SMU Price Momentum Indicator for hot […]
By CRU Senior Analyst Ryan McKinley from CRU’s Steel Sheet Products Monitor Falling demand in most markets around the world has continued to weigh on steel sheet prices. Meanwhile, the announcement that the USA will remove Section 232 tariffs on steel and aluminum producers in the EU and replace them with a quota system means […]
Total construction spending declined in September for the first time since February, as both residential and nonresidential construction slipped, according to a new analysis of federal construction spending data by the Associated General Contractors of America. AGC continues to lobby for the House to complete work on the bipartisan infrastructure bill that the Senate passed […]
The deal just announced between the U.S. and EU to replace the Section 232 tariffs with a tariff rate quota and to cooperate in reducing climate-changing carbon emissions was seen as a breakthrough by many – but not all. Trade groups representing steel consumers and producers from other parts of the world expressed “disappointment” that the […]
We’re all on the same price roller coaster, and that’s true whether we’re talking steel, plastic or wood. But we’re not all on the same car – and so your impression of the market might be vastly different if you’re in the front car instead of the back one. That’s the impression I got while speaking […]
With record third-quarter earnings of $2 billion in the bank, U.S. Steel President and CEO David Burritt offered a bullish outlook for the steel industry and his company in 2022. Highlights of the company’s earnings call on Friday included an update on the steelmaker’s progress in finding a site for its new electric arc furnace […]
Gibraltar Industries Inc. reported net income of $27.9 million in its third quarter, down nearly 11.0% from the same period last year due to rising labor costs and supply-chain shortages, company executives said. The Buffalo, N.Y.-based manufacturer and distributor of building products reported a 24.5% increase in revenue to $369.4 million during the period. Sales […]
This year’s third quarter was the best quarter on record for Reliance Steel & Aluminum Co., the nation’s largest service center organization. Reliance reported gross profit of $1.21 billion on sales of $3.85 billion in Q3. “Our resilient business model, favorable metal pricing trends and excellent execution combined to produce another quarter of record-setting financial […]
Evraz steel sales dropped in the third quarter as a strong showing from its North American operations only partially offset weaker demand as well as logistics and maintenance issues in Russia. The sales drop in Russia resulted in part from a slowdown in the local construction market. It also stemmed from bad weather and difficulty […]
Distributors who sell galvanized steel products to the construction and HVAC sectors report a slight softening in demand at the same time that competition is firming up and prices are looking down. Market conditions overall are still favorable, reported members of the Heating, Air-Conditioning & Refrigeration Distributors International during HARDI’s monthly conference call today, but […]
In this year’s edition of CRU Breakfast – part of LME Week – we explored three key themes that shaped the commodities markets – the global economic and commodities outlook, the changing role of China, and Navigating ESG. All three themes have been central to many developments in the industry and remain equally crucial moving […]
The impact of the pandemic on the domestic construction sector cannot be overstated, as more than two-thirds of U.S. states have struggled to add jobs since the onset of the global health crisis. Only 14 states and the District of Columbia have increased construction jobs since February 2020, reports the Associated General Contractors of America […]
Demand for design services from architecture firms in the U.S. improved for the eighth consecutive month, according to the latest report from The American Institute of Architects (AIA). AIA’s Architecture Billings Index rose from 55.6 in August to 56.6 in September. The ABI has expanded each month since January. The index for new project inquiries […]
Steel Warehouse has withstood the test of the past year, but “it’s a pass-fail course and the assignments are always changing,” said Mike Lerman, president of the South Bend, Ind.-based service center. Lerman was the guest speaker for Wednesday’s Steel Market Update Community Chat. Steel Warehouse was founded by Lerman’s father, Nathan, in 1947 “with […]
Algoma Steel shares began trading on the Nasdaq Stock Exchange and the Toronto Stock Exchange (TSX) on Wednesday under the ticker symbol “ASTL.” The development follows an initial public offering (IPO) made possible by a merger between the Canadian flat-rolled steelmaker and New York-based Legato, a special purpose acquisition company (SPAC). The deal resulted in […]
The U.S. economy expanded at a modest to moderate rate from late August to early October, said the Federal Reserve in its latest Beige Book report. Overall growth was curbed, though, due to supply chain disruptions, labor shortages and uncertainty around the surging Delta variant. Consumers spent more dollars in travel and tourism activity once again, […]
Strong consumer demand helped push builder confidence higher in October despite growing affordability challenges stemming from rising material prices and shortages. Builder sentiment in the market for newly built single-family homes moved four points higher to 80 in October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Despite the increase, […]
Steel Dynamics’ President and CEO Mark Millett expects “transformational change” from SDI’s new electric arc furnace mill nearing completion in Sinton, Texas. “We are not simply adding flat rolled steel production capacity. We have a differentiated product offering, a unique regional supply chain solution, a significant geographic lead time advantage and offer a sustainable alternative […]
Algoma Steel’s initial public offering (IPO) is around the corner following shareholder approval of a deal between the Canadian steelmaker and Legato Merger Corp., a special purpose acquisition company (SPAC) The merger between the New York-based SPAC and privately held Sault Ste. Marie, Ontario-based Algoma is expected to close this week, an Algoma spokeswoman said. […]
Monthly Key Market Indicators, as analysed by Steel Market Update, softened again in the past month. A typical summer slowdown followed by a surge in COVID variant cases, compounded by a lackluster job market, reflects an uneasy economic landscape. Consumer confidence has dwindled, highlighted by decreases in key indicators across the marketplace. SMU’s Key Market Indicators […]
Producer prices posted the smallest advance year-to-date in September, according to data released by the Labor Department. Despite supply chain snarls and shortages that have driven up manufacturing and shipping costs, the negligible expansion kept the historic climb for the index and subcategories for final demand going. Since the fall in early 2020, the composite […]
Steel Dynamics Inc. (SDI) posted yet another new quarterly profit record on record-high flat-rolled steel prices. And the Fort Wayne, Ind.-based electric arc furnace (EAF) steelmaker thinks that the record times could roll into the fourth quarter as well. “Domestic steel demand remains solid in our automotive, construction, and industrial end markets. We believe this […]
By CRU Advisor Greg Wittbecker LME cash aluminum prices have retreated hard from new 13-year highs, falling from $3,300 last week to reach $2,682 as we completed the week. Supply-side Price Concerns Get a Reality Check but Remain Dangerous Market euphoria over supply-side constraints ran into the effect of China’s “command economy” at work. Power […]
Global steel demand will grow by 4.5% in 2021 and reach 1.855 billion metric tons following a 0.1% growth the year prior, according to World Steel Association’s (worldsteel) October 2021 Short-Range Outlook (SRO). An additional increase of 2.2% to 1.896 billion metric tons in 2022 is forecast for steel demand worldwide. The current forecast assumes […]
By CRU Senior Analyst Ryan McKinley from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) changed little in October, declining slightly by 0.4% to 374.1. Price directions were mixed but fell by the most for European scrap and DRI while scrap prices in Asia had the largest increases. We expect to see similar […]
By CRU Senior Analyst Dimitry Popov and Analyst Wei Wang In recent weeks, China has been experiencing the worst power shortages in decades. Various industries in 20 provinces have been affected and even residential customers had power cuts in the extreme cases. Increasing electricity demand, short coal supply and the decarbonization drive are three main […]